A strategy that could help keep your new business going during these slow times is to focus on a niche market.
What is a niche? It’s a subset of the overall market. Focusing your marketing on a niche means addressing a need that isn’t being addressed my mainstream providers. For example, rather than having a bookstore, you may choose to specialize in business books. Or you may decide to design your accounting software especially for dental care providers.
Why serve a niche market? There are a number of reasons why you can be more profitable in a niche market:
- Targeted marketing – You can more readily identify target customers for what you sell and reach them through marketing. You’ll also be more “findable” on the Web by customers who want what you offer.
- Competition – The mainstream book sellers or accounting software companies are spreading their marketing dollars over a broader market and aren’t focusing on the customers you can serve.
- Expertise – You can gain a reputation as being more knowledgeable about your particular product or service area than mainstream vendors, attracting a special group of customers.
Susan Reid at Small Business Trends suggests that you create a “niche statement” in order to assure that “you, not someone else, gets the lion’s share of your niche’s attention”. She recommends that you “clearly state who your target niche is, and specifically name the problem people in your niche will have that you will solve.” Her post includes a simple, easy to follow example.
If you can find a way to quickly turn your business into a niche business, write your niche statement, and reach for profitability in an unprofitable economy.